TITLE OF THE STUDY: STUDY ON OPPORTUNITIES, CHALLENGES AND COST-EFFECTIVE INFORMATION TECHNOLOGY PRACTICES FOR SMALL & MEDIUM-SIZED ENTERPRISES. A RESEARCH SYNOPSIS SUBMITTED TO JAIN UNIVERSITY FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN MANAGEMENT. BY RM SUDHAKAR. Information Technology (IT) is even now termed as a costly affair especially in Small and Medium-sized Enterprises (SMEs), this is primarily because no clear definition of the expectation from the implementing companies. If IT is affordable for some companies, then the question is how to make best use of IT, and adoption strategy is a real challenge, and moreover, the success ratio or maximum utilization in most of the IT implementations is less than 50%. In today’s competitive world IT is no more an option, it is a necessity and the winners are those who make good use of these IT technologies in the current competitive and un-certain business. IT is no more an option for Business including SMEs! The aim of this research is to identify the key challenges of SMEs to gain excellence in their domain and how adoption of IT can help them to achieve the same. Also this study aims at simplifying the IT implementation practices in most affordable & a cost-effective way.

1. Study on Opportunities, Challenges and Cost-
effective Information Technology practices for
Small & Medium-sized Enterprises
RM Sudhakar
Director & CEO, Netsoft Solutions India Pvt. Ltd.
Batch: August 2012
Under the Guidance of
Dr. Y Vijayakumar
PRINCIPAL
Shirdi Sai Engineering College, Bangalore

2. Agenda
• Introduction
• Need for the Study
• Literature Review
• Gaps Identified
• Theoretical Framework
• The Present Research Work
• Research Methodology
• Q & A

3. Introduction
• SMEs in India
• IT involvement and penetration in Indian SMEs
• My realization

4. Need For the Study
• Challenges and problems faced by SMEs in India
How these problems and challenges are addressed
across the globe?
• Advantages and benefits of IT
• Opportunity for SMEs
• Motivation after need recognition

5. The Questions to be probed
• Is the current business model of Indian SMEs
suitable to deliver efficient and effective solutions to
their customers and meet the challenges posed by
their overseas counterparts?
• Is the myth that most of the SMEs in India are not
inclined towards implementing IT solutions fearing
high investments and low returns true?
• Are there any cost effective IT solutions suitable for
Indian SMEs?
• Is the Indian SME willing to adapt to IT solutions if it
meets their requirements?

6. The review of the studies undertaken
Author/ researcher Title of the work Journal Details, with title,
Vol, issue, Page no,
Outcome of the Study Remarks
Parker, Richard
Andrew (2008)
Explaining
successful
information
management in
small business
Doctoral thesis Studies UK in general focused on small businesses
alone with more systematic and scientific way of
Research and concludes stating conduct one case
study in significant depth using a reproductive
research strategy to develop critical realist ideas
further.
Morteza Ghobakhloo,
Mohammad Sadegh
Sabouri, Tang Sai
Hong, Norzima Zulkifli
Information
Technology
Adoption in Small
and Medium-sized
Enterprises; An
Appraisal of Two
Decades Literature
Interdisciplinary Journal of
Research in Business ,Vol. 1,
Issue. 7, July 2011(pp.53-80)
IT has critically become indispensable tool for daily
operations of organizations.
More comprehensive study of IT adoption within
SMEs investigating SME-related influencing factors
simultaneous with other aspects (drivers, enablers
and inhibitors) of IT adoption seems to be necessary
Prof. H.L. Nagaraja
Murthy
Problems Being
Faced by SMEs in
India
(An Attempt to
Study MSME
Segment Minutely)
Published on
IndianFaculty.com:
14/04/2012
SMEs in India face a number of problems - absence
of adequate and timely banking finance, non-
availability of suitable technology, ineffective
marketing due to limited resources and non
availability of skilled manpower.

7. The review of the studies undertaken
Author/ researcher Title of the work Journal Details, with title,
Vol, issue, Page no,
Outcome of the Study Remarks
Morteza Ghobakhloo,
Tang Sai Hong,
Mohammad Sadegh
Sabouri and Norzima
Zulkifli
Strategies for
Successful
Information
Technology
Adoption in Small
and Medium-sized
Enterprises
Information 2012, 3, 36-67;
doi:10.3390/info3010036
Due to the numerous advantages of IT, SMEs are
trying to adopt IT applications to support their
businesses. IT adoption by SMEs differs from larger
organizations because of their specific
characteristics, such as resources constraints.
Federici, Tommaso ERPs IN SMEs: EX-
POST EVALUATION
OF
SUCCESS FACTORS
ECIS 2007 Proceedings
Available at:
http://works.bepress.com/tf
ederici/3
The introduction of ERPs into SMEs cannot be
based on a sheer reproduction of the experiences
with larger companies and represents a new
challenge with significant peculiarities to be
considered. ERP introduction is evaluated as a
success and that the benefits obtained are
mostly related to the simplification of internal
procedures, a much easier information
retrieval, an improved performance management
and some increase in production efficiency.

8. The gaps identified
• Mapping SMEs and IT solutions organizations in India
• Comprehensive study of IT for SME as a whole not
done, as most of them are with reference to any
specific challenge or opportunity.
• SMEs is big in number, challenge to cover them in a
sophisticated way for certain study.
• Empowering SME business through the aid of IT
• Support system for success factor in IT
implementation is hardly worked on.
• A model system for the SMEs to adapt IT in a
successful manner.
• How SMEs can take the benefit of the external Eco
system towards IT & growing in the business?

9. Theoretical and Conceptual
framework
Demographics Profile
Expectation & Perception
Descriptive, Exploratory &
Case study based
Relationship
IT &SMEs, SMEs &
Competition, Pressure &
Innovation

10. The Present work
The Research Enquiry / Statement of the Problem:
IT is no more an option for Business
including SMEs!

11. The Present work
Research Design:
By conducting a literature review, it
was found that most of the Indian
SMEs is facing a lot of challenges in
implementing IT. To get a clear picture
about the same a descriptive research
has to be conducted to identify
variables which may answer research
questions. Variables like IT solutions,
affordability, business model, and …..
will be identified and studied.
Type of design:
Qualitative, Descriptive, Explanatory,
<-Case method>
Population:
SMEs in India
Sample size: 300?
Sample design:
based on region, size, sector, type,
entrepreneurial style
Data collection:
Primary data through questionnaire
and personal interview.
Secondary data through MSME
Organization, NASSCOM, Research
Organizations

12. The Present work
Research Objectives:
• To study the existing structure of the SMEs
• To study and understand the underlying factors that
influence the organization perform efficiently and
effectively
• To understand the problems and challenges faced by
SMEs that could possibly be addressed by proper
implementation of IT, which in turn can enhance the
overall productivity of the organization
• To understand the various categories of SMEs that have
adapted IT solutions
• To study various IT solutions available that caters to SMEs
including the modules available

13. Methodology
Sampling Population:
• Organisation to study: General study not focused on any single
organization or type
• Sampling details: Judgmental sampling is used (sample is
selected based on the input provided by industry experts)
Sources of Data Collection:
• Primary data through questionnaire and personal interview.
• Secondary data through company manuals, journals, specific
websites.
Mode / method of Data Collection:
• Questionnaire and personal interview.

14. Methodology
Analysis of the Results / Statistical Analysis:
• Use of MS Excel.
Limitations of the Study:
• Geographical Limitations
• The time frame is less
• Responses may be biased in some industries by some
respondents
• Peer influence may lead to inaccurate data
Scope of the study:
• The study is inclusive of all the SMEs in India irrespective of the
industry they are in.

15. Methodology
Utility of the Study:
The outcome of this research shall be an open web tool or best
possible guidelines that can be easily downloadable or available as a
handbook for any SMEs to get all that is required for the successful
IT implementation in their organization, which shall help them
towards the business progress by identifying the opportunities to
make the better use of IT, how to overcome the common challenges
in implementing the IT and the best possible cost-effective way of
implementing IT all these with the clear case-study .

16. Chapterisation
• Cover and Initial Pages
• Executive Summary
• Chapter 1: Introduction
• Chapter 2: Review of Literature
• Chapter 3: Research Methodology
• Chapter 4: Data Analysis and Interpretation
• Chapter 5: Summary of Findings
• Chapter 6: Conclusion and Recommendations
• Bibliography
• Annexure

17. RM Sudhakar - Brief CV
• Director & CEO at Netsoft Solutions India Pvt. Ltd.
• Total 15 years experience in IT Solution out of which
12+ years as an Entrepreneur.
• The majority of the experience in serving &
interacting with the SMEs
• MBA (IT), SM University; MS Computer Science,
Manipal University
• The vision is to Empower Business & Living.

18. Plan of Action for next 2 years
Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Aug 15ACTIVITIES
Extensive review of literature
Preparation of questionnaire
and questions for personal
interview
Sampling Design
Data collection after approval
from concerned authorities
Data correction and Processing
Data analysis using
appropriate analytical tools
Preparation of report
Final submission

19. Q / A
Thank You
RM Sudhakar
Director & CEO, Netsoft Solutions India Pvt. Ltd.
www.rmsudhakar.com
http://www.linkedin.com/in/rmsudhakar